Jack's Back! The Golden Bear Pushes Aside Tiger To Earn Top Spot In Annual Golf Inc. Rankings

Photo by Jim Mandeville

For the just the second time since Golf Inc. began compiling its list of the most powerful people in golf, Tiger Woods is not at the top. But the name at No. 1 is just as familiar - it's Jack Nicklaus, who has parlayed his fame as one of the greatest players in history into a successful golf business empire.

Although his career as a competitive golfer is all but over, the Golden Bear enjoyed a stellar year, enhancing his business profile and continuing to shape the present and future of the industry as a course designer, teacher, equipment and apparel brand and professional tour backer.

This year's list overall is a sign of just how much the golf industry has changed. In the six years since our first list, only 11 of the original 25 remain. Those who made the final cut by Golf Inc. editors influence the development and building, the operations, the financing and the revenue streams of golf courses and golf organizations around the nation. The decisions they make impact virtually every course in the nation, either directly or indirectly.

For Woods, the fall was a short one, to No. 2 on list. Although he's still the top-ranked player in the world, he proved during the past year that he could at times be merely mortal on the course. Off the course, he's still the king of endorsements, but aside from pitching products, he rarely exercised his influence on the game.

One of this year's notable newcomers is the Great White Shark. Greg Norman, following in the footsteps of Nicklaus, revved up his course design business and continued to enjoy success in ventures ranging from turf growing to apparel.

Here are profiles of the people judged the most powerful in golf:

1. Jack Nicklaus, professional golfer, course designer

Don't look for his name on any leader boards, even on the Champions Tour, but you will see it on dozens of new golf courses -- and even a few residential communities -- in the next few years.

Jack was ranked No. 2 in 2003.

The Golden Bear reigns over one of golf's most successful business empires. His golf course design firm is one of the busiest in the world, with more than 250 courses currently in operation, another 42 under construction and 23 in planning, More recently, Nicklaus has been the driving force behind a new golf course brand, Bear's Best, which has courses in Atlanta and Las Vegas, Nev., and more on the way.

And he's expanded his influence in the game through involvement in equipment (Nicklaus Golf), instruction (Nicklaus Academies), real estate (Golden Bear Realty) and player development (Golden Bear Tour). Among his newest ventures is the Golden Bear Lodge, a luxury golf community located in the Dominican Republic.

To Nicklaus, his work as a course designer is a natural extension of his career as a player.

"To have the ability to design golf courses and influence where people play, the way people play and how they play is important to me," he told Golf Inc. He said he derives almost as much satisfaction from his successes as an architect as he did from his dozens of tournament triumphs.

"Almost nothing can replace the feeling of walking up the 18th fairway of a major championship with a chance at victory. But designing a golf course is a close second."

And he believes he's still learning, still improving as an architect. "Even though I have been doing this now for more than 30 years, I think I continue to get better in my design work. My courses are more playable and appealing to more levels of golfers, and I believe our design philosophy focuses on the perspective of the member or the average golfer more now than ever before."

As a businessman, Nicklaus said he relies on the same characteristics that helped him win 20 major championships: focus, preparation and not being afraid to fail. But despite his wide-ranging business interests and high profile as one of the greatest ever to play the game, Nicklaus remains low-key about his role in the industry today.

"I feel like one lucky guy to have been here, now at 64 years old, and not be cast aside by the masses and still feel like I am part of a game which I love."

Last year's ranking: 2

2. Tiger Woods, player

Although Buick is still banking on his face and name to sell its cars and Nike still loves it when he wears their logo, Tiger's influence waned somewhat this year as his on-again, off-again play switched into neutral. He's not winning as much, and the public seems much more interested in the antics of the latest young minority (and female) phenom, Michelle Wie. Despite that, Woods is still the face of the 21st century's young, urban, minority golfer. And like Arnie, Jack and the other unforgettable golfers who have made their marks on the industry, he's still known around the world by just his first name.

Last year's ranking: 1

3. Robert Dedman Jr., ClubCorp chairman

With the company's economic woes behind it, Dedman is leading the largest owner of golf courses back to a position of strength in the industry. ClubCorp has sold many of its non-core assets, especially daily fee courses, and is getting back to its private club roots.

Meanwhile, a new group of his lieutenants brought in from the hotel industry is streamlining its operations and seeking new opportunities in third-party management.

Last year's ranking: 3

4. Dana Garmany, Troon Golf chairman

While other top companies have taken their lumps, Garmany has proved successful with his strategy to build a successful major management company. Troon Golf continued to roll up new contracts last year and became the second largest operator of golf courses in the world. More than 3.5 million core golfers are tapped into the Troon brand experience, and more are likely on the horizon.
Last year's ranking: 4

5. Roland Smith, American Golf Corp. chief executive officer

After more than a year at the helm of the largest operator of golf courses in the world, Smith is beginning to make w a v e s . American Golf has slimmed down its corporate operations and focused more efforts at the course level to keep expenses in check. The company continues to sell off non-core properties in markets such as Texas, but it shored up its investment in the New York City market by renewing its leases on six of the city's courses.

Last year's ranking: 6

6. Tim Finchem, PGA Tour commissioner

It doesn't seem to matter whether Tiger Woods is winning majors or not, the PGA Tour just keeps on growing under Finchem's leadership. Prize money this year has risen to a record $242 million, and the Tour expects to raise even more than the $82.8 million it generated for hundreds of charities around the country in 2003, a tribute to Finchem's ability to attract top-dollar corporate sponsorships. He's also been a relentless supporter of Golf 20/20 and has helped player development efforts such as First Tee and PlayGolfAmerica get off the ground. To borrow the Tour's own catch-phrase, "This guy is good!"

Last year's ranking: 5

7. Steven Lesnik, KemperSports Management chairman and CEO

KemperSports Management could be called the Teflon management company. Despite troubles that have plagued many of its peers, the Chicagoarea company has managed to maintain its ranking near the top of the golf management heap and even keep growing despite losing contracts.

So if KemperSports is the Teflon company, does that make Lesnik the Teflon chairman and CEO? Under Lesnik's guidance, KemperSports enjoyed a good year last year, despite losing the contract to manage 12 properties for the Forest District of Cook County, Ill., just the year before to archrival Billy Casper Golf. KemperSports reported an industry-unprecedented 100 percent renewal of its current contracts last year, while adding 10 new courses to its management portfolio.

Lesnik says that trend will continue. "We envision KemperSports maintaining its steady growth over the next several years," he said. "We see growth in our owned portfolio, with several additions this year; in our managed portfolio, which has grown consistently over the past five years; and in our golf event and marketing businesses."

KemperSports also opened the renovated Harding Park Golf Course in San Francisco to rave reviews. The course has already signed on to host the PGA's season-ending World Golf Championships-Amex event.

But Lesnik is realistic about current market conditions.

"We expect industry conditions to continue to be treacherous for golf course owners, with leveraged owners especially at peril as more and more courses compete for a shrinking base of avid golfers," he said. "We applaud efforts of industry associations to attract recent dropouts, maybe- interesteds, and to encourage more frequency of play. We, ourselves, have been doing that for a decade in about 20 states and know that player cultivation takes time."

He says the management companies that have proved their worth in tough times will continue to flourish once the market improves.

"That's why we think the next five years will see an enormous premium on strong, knowledgeable, operating management, innovative, professional marketing, and sophisticated financial acumen, for individual owners as well as multi-course operators," he said.

Last year's ranking: 7

8. Bill Kubly, Landscapes Unlimited chief executive officer

As CEO and founder of a golf course building behemoth, Kubly has kept the Lincoln, Neb.-based firm atop the heap with a diversified approach, while remaining focused on its core business of golf course construction. Kubly and Landscapes Unlimited own parts or all of more than 20 courses, manage their owned courses and keep crews busy year-round on non-golf projects like sports field construction and maintenance, landscape construction and irrigation contracting.

Last year's ranking: 9

9. Wally Uihlein, Acushnet president-CEO

The CEO of Titleist/FootJoy continues to top the ranks of golf's equiptment manufacturer segment. The company's domination of the golf ball market -- nearly 60 percent market share -- and consistently strong club, shoe and accessory sales makes Titleist golf's most recognizable brand name. Uihlein's influence is felt on many levels, including, along with Ping Golf, starting a chilling trend for Reed Expositions and the PGA Merchandise Show by dropping out of the spring and fall shows two years ago. TaylorMadeadidas's 11th hour cancellation this year would have been unlikely without those precedents.

Last year's ranking: 12

10. Arnold Palmer professional golfer, course designer

Arnie played in his landmark 50th straight -- and possibly last -- Masters in April, and it was obvious he's still The King for the vast majority of the Augusta patrons. Within the industry, however, the Palmer empire continues to shrink on some fronts. Palmer Course Management is apparently no longer aggressively pursuing third-party management deals, and newcomer Larry Galloway is r e p o r t e d l y charged with selling off some or all of the company-owned courses. Palmer Course Design remains busy at home and overseas and the Palmer name still sells merchandise, but for how much longer?

Last year's ranking: 8

11. Ron Drapeau, Callaway Golf chief executive officer

Since becoming CEO of Callaway Golf in 2001 in the wake of founder Eli Callaway's death, Drapeau has guided the company through some turbulent times, including battles with the USGA over the original ERC and ERC II drivers, margin-crushing competition and a floundering ball manufacturing operation that has cost the company millions annually.

In 2003, Callaway resolved its golf ball woes by purchasing Top-Flite's golf assets for $155 million, catapulting the company to No. 2 in ball sales and transferring the majority of ball manufacturing to the former Spalding plants in Massachusetts.

"That enabled us to become one of the lowestcost golf ball producers in the world -- if not the lowest," Drapeau said.

Callaway (even without Top-Flite sales) showed a profit in golf balls for the first time ever in this year's first quarter. On the club side, Drapeau said Callaway has led the industry in woods, irons and putter sales for seven consecutive years, and while market share in woods declined last year, booming Odyssey 2-Ball sales made putter sales rocket, according to Drapeau.

Callaway raised some eyebrows recently with the announcement that it will be making practice range balls for competitor Nike Golf.

Drapeau said that isn't a harbinger of future cooperative ventures with Nike.

"If we can share in a piece of the market through them, why not go for it?" he said. "I get paid to make dollars for the company."

Callaway appears to have been a big winner in industry consolidation with its Top-Flite buy, and Drapeau thinks more is coming -- from the East.

"The next wave of consolidation will be international consolidation," he said, citing companies like Bridgestone, Mizuno and PRGR that have a major presence in Asia but limited impact in the United States. His prediction is that the American companies will be the buyers in that scenario.

Drapeau said Callaway's immediate tasks are growing their woods business, making and keeping their golf ball business profitable, and successfully integrating the Top-Flite line into the Callaway operations.

"We've got our hands full," he said. Based on track record, few will bet against him.

Last year's ranking: 13

12. David Fay, U.S. Golf Association executive director

No news is good news. That's what Fay and his USGA rules committee said this year as they waited for the backlash from the major revisions to the rules of golf, which the association makes in conjunction with the Royal and Ancient Golf Club of Scotland every four years. After the ruckus on clubhead size just a few years ago, Fay might well have been expecting a battle. But no one seemed very upset this time at the USGA's dictates on maximum clubhead size and shaft length or its implementation of new tests for spring-like effect. So maybe Fay can breathe easy. Does the industry just have other things to worry about (like falling rounds), or has it accepted that Fay and the USGA set the rules?

Last year's ranking: 11

13. Henry DeLozier, Pulte Homes vice president for golf

While the industry overall struggled during the past year, rounds at Pulte-owned courses grew by 6.7 percent. And the company, which now owns 22 courses across the country, is building six new 18-hole courses in Florida, Arizona and California and has eight golf courses or country clubs in planning. With more than 32,673 homes sold in 2003 and more than $8 billion in 2003 revenues, Pulte's total assets in golf now exceed $310 million. But the company during the past year has turned to outsourcing more management responsibilities at its courses. As a result, DeLozier 's role has shifted to include more planning and general oversight of Pulte golf properties.

Last year's ranking: 10

14. Mark King, TaylorMade Golf chief executive officer

TaylorMade Golf continues to be one of golf's leading brands, and has become an ever more valuable contributor to the adidas- S a l o m o n empire. King has ascended to the company's CEO role, and apparently remains one of the conglomerate's fair-haired boys while many other top TaylorMade-adidas executives have recently left or been replaced by people from the parent company. One of the most aggressive -- competitors say cutthroat -- competitors in the oncourse retail market, TaylorMade has successfully managed to reach out to the mid- to high-handicap golfer while retaining its highend, high-performance fan base with excellent representation on the pro tours.

Last year's ranking: 14

15. Jim Awtrey, PGA of America executive director

The PGA of America is the messiah of the golf industry today, showing the wandering and confused masses of golf operators the way to reach out to golfers. Awtrey and his organization are backing Play Golf America, the grow-the-game marketing initiative, 100 percent -- or should we say 12 million percent. That's how many dollars the PGA is spending this year to advertise new player and player development opportunities on television. The goal is to reach the 17 million adult golfers who say they would like to play golf and the other 14 million who play occasionally, and help the industry bring them to golf courses nationwide.

Last year's ranking: 17

16. Ron Jackson, Meadowbrook Golf chief executive officer

Meadowbrook Golf is gearing up for growth. Although the company has held its ground in recent years, it hasn't been able to expand its portfolio. This winter the company launched Medallion Golf, an affiliate aimed at rolling up h i g h - e n d properties. The company has been on the hunt and has all the ammo it needs, but will it be able to pull the trigger this year?

Last year's ranking: 16

17. Peter Hill, Billy Casper Golf CEO & Chairman

Billy Casper Golf, under Hill's direction, had another year of significant growth, increasing its portfolio of properties from 36 18- hole equivalents to 46. That makes BCG the fastest growing company in the industry, again. The 10 courses and two practice facilities Casper is now running for the Forest Preserve District of Cook County, Ill., saw a 64 percent increase in rounds played in 2003, thanks to Casper's efforts to improve course conditions, maintenance practices, customer service, food and beverage and merchandising. Casper also broadened its geographical horizons last year, taking over management of courses in Arkansas, Georgia and the Pacific Northwest.

Last year's ranking: 20

18. Joe Louis Barrow, The First Tee executive director

For the third straight year, The First Tee in 2003 reached its annual goals in participation and in affiliate relationships. That's due in no small part to the tireless work of Joe Louis Barrow, who has served as executive director since 2000.

Barrow has literally traveled the globe to preach the need for player development programs directed at young people, especially those the game has traditionally ignored. As a result, The First Tee last year had more than 140,000 young people involved in its programs, established 119 affiliate relationships with existing courses and developed 33 learning facilities worldwide, which puts it more than 60 percent toward its 2005 goals.

This year, Barrow expects to open 40 to 45 facilities.

But beyond the numbers, Barrow finds his greatest satisfaction from the impact his organization has on the nation's youths in the four years he's been on the job.

"I've seen the growth and development of young people," he said. "I've watched as the initial group of The First Tee Scholars -- who began as high schoolers -- have matured and grown in confidence and abilities as freshmen in college."

That's in keeping with The First's Tee's overall goals of not only growing the game, but using golf as a vehicle for teaching life skills such as sportsmanship, self-discipline and manners.

Barrow scored one of the biggest achievements during the past year by signing up Wal- Mart to sponsor a unique tournament, The First Tee Open at Pebble Beach, at the famed Pebble Beach Golf Links Sept. 13 to 18. The event will team 78 junior golfers -- both boys and girls -- from around the country with players from the PGA Champions Tour.

It's typical of the type of corporate and public support Barrow has been able to attract.

The challenge now, he said, is to continue to maintain the same level of quality programs even as First Tee adds more chapters quickly.

"It's a challenge when you're growing at the level we are," Barrow said. "Our focus will be on developing consistency so that the experience that is available for a young person in Atlanta is the same quality they will receive in Los Angeles."

Last year's ranking: 19

19. Bob Wood, Nike Golf president

Under CEO Wood's leadership, Nike Golf continues to chip away at the entrenched market leaders in the equipment category, albeit slightly more slowly than some observers had predicted. The company's Slingshot irons signaled a nod to the larger midto high-handicapper market, and the new Ignite driver line has done well, but the company continues to trail i n d u s t r y leaders in club and ball sales by a wide margin. The Nike brand name has, however, held up relatively well in footwear, apparel and accessories.

Last year's ranking: 15

20. Bob Husband, Heritage Golf Group president

Husband is a master at making deals happen. The company continues to build a portfolio of h i g h - e n d properties, forging partnerships to make them possible . GTCR Golder Rauner continues to be the equity partner of the bulk of its deals. Meanwhile, Husband has recruited other partners such as Hillwood, a real estate investment and development company chaired by Ross Perot.

Last year's ranking: 22

21. Tom Fazio, course architect

Fazio continues to be the architect of choice for many high-end developers such as Discovery Land Co. His blend of aesthetics, strategic design and imagination provides developers with courses for any target market, with the added cachet of the Fazio name to help attract buyers , members or daily fee players. His tweaking of Augusta National provides an annual reminder of the prestige attached to Fazio's work.

Last year's ranking: 21

22. Greg Norman, professional golfer, course designer, entrepreneur

Golf's Renaissance man, Norman makes increasingly rare appearances on PGA Tour leaderboards, but the Norman name and familiar Great White Shark logo seem to be everywhere else. His golf course design business is thriving, his partnership with Medallist Golf Development is booming, and other Norman enterprises include a turf grass firm, licensing agreements for apparel, clubs and accessories, and even a wine business.

Last year's ranking: Not ranked

23. Steve Mona, Golf Course Superintendents Association of America CEO

A major restructuring of the GCSAA operation has given Mona more power than ever. He now controls the day-to-day business of the association, as the board of directors steps back to assume a more strategic, visionary role. His most immediate challenge is to engineer a smooth meshing of GCSAA's annual conference with that of the National Golf Course Owners Association, starting in January. He's also faced with reversing a three-year decline in revenues and a recent drop in membership.

Last year's ranking: 23

24. M.G. Orender, PGA of America president

Orender has risen to the top of the Professional Golfers Association ranks at just the right moment. As a long time proponent of junior a n d w o m e n ' s golf programs, his i d e a l s match up well with the industry's initiatives to grow the game. Orender practices what he preaches as the head of a multi-course operator, Hampton Golf.

Last year's ranking: Not ranked

25. Joe Beditz, National Golf Foundation president & CEO

Can the NGF be a one-stop shopping, all things-to-all operators , industry resource? Beditz certainly hopes so. Promoting itself as the industry's only true trade association, spanning all segments of the business, the NGF under Beditz's leadership has gone from being mainly an industry research group to a marketing and operations consulting service, offering everything from customer surveying to rounds data from more than 3,700 courses. The group now provides marketing, advertising and media relations services as well.

Last year's ranking: 18